The Worldwide Cost of Living Index is calculated by comparing prices in US dollars for goods and services in 173 cities. This year’s data was collected in August and September. This was because prices for freight and commodities rose, exhibiting the fastest inflation rate recorded over the past five years.
According to Upasana Dutt, head of worldwide cost of living at the EIU, “Social restrictions due to the coronavirus pandemic have disrupted the supply of goods, leading to shortages and higher prices. We can clearly see the impact in this year’s index, with the rise in petrol prices particularly stark,” she said, while central banks are expected to raise interest rates cautiously, reducing inflation.
Let’s take a look at the costliest cities in the world.
The capital of Israel climbed up five spots to clinch the world’s costliest city title. Increasing value of the ‘Shekel’ against the Dollar, due to increase in transport and grocery prices along with successful COVID-19 vaccination rollout, contributed immensely to the city topping the chart this year.
2. Paris & Singapore
The capital city of France was the costliest city to live in last year, but this time, it fell by one spot to tie with Singapore which climbed two spots to take the second place with Paris.
Though the cost of living in the Swiss city of Zurich is exceptionally high, it is still an attractive tourist destination, owing to many factors like scenic beauty, better healthcare and political and economic stability. Zurich has been named the fourth costliest city in the world this year.
4. Hong Kong
With low taxes and high business opportunities available in the country, one of the most populated cities in Asia has seen its cost of living skyrocket over the past few years. With its real estate market often rated as the most overvalued real estate market in the world, Hong Kong is the fifth costliest city in the world.
5. New York
The American city of New York has the highest income taxes at the state and local levels, making it the sixth costliest city in the world
Second city from the Swiss Alpines. One of the best cities to live in the country, Geneva, inspite of low taxes and high salaries still remains one of the costliest. Insurance, services and food is expensive than other cities, making it the seventh costliest cities in the world.
The natural beauty and modern infrastructure coupled with good work-life balance, often attracts working professionals to the city and the country in general. However, depending on where and how you live and what you do, Copenhagen’s cost of living is high, making it the eight costliest city to live in this year.
8. Los Angeles
Another American city on the list. Los Angeles is known to attract professional and tourists alike. With interesting architecture, food and Hollywood, the city is an expensive one to live in. This year it is ninth on the list.
Rent is the most expensive cost in Osaka. The Japanese city fell from its fifth position last year to tenth this year.